Why challenges in OEM marketing are often more valuable than easy wins, and what app teams can learn from them.
We’re REPLUG, a Berlin-based app marketing agency specializing in OEM marketing, paid user acquisition, ASO, tracking and analytics, and more.
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Supriya, REPLUG’s OEM Ads Manager, described it simply:
“The installs were there. The applications were there. But the approved loans were extremely low.”
At first glance, the data didn’t add up. The OEM campaigns were generating:
But approvals lagged dramatically behind.
After weeks of data checks and follow-ups, the real cause surfaced:
The app only served specific cities in Indonesia, not the entire country.
“Advertisers often target the whole country, but are they actually serving every city is a very different question. That’s the gap that created the KPI mismatch here.”
This single constraint shaped the entire outcome.
Once the client finally clarified the limitation, the performance pattern made sense.
But OEM inventory (particularly Xiaomi) does not support:
Which means:
No amount of optimization could correct a misalignment between: channel targeting → business availability → KPI logic.
Supriya:
“If we continued running with Xiaomi, we would keep getting installs, just not the right users. That’s when we knew we had to pivot.”
Instead of pushing OEM further, REPLUG proposed a shift to a DSP, where:
This prevented the client from burning budget on users who could never convert.
Supriya:
“If A doesn’t work, we don’t keep forcing it. We move to B. The goal is the client’s KPI, not protecting a channel.”
This is key:
This case led to operational improvements inside REPLUG.
Supriya updated her onboarding flow:
“One of my first questions now is whether there are city-level restrictions or business eligibility rules. Before targeting, before creatives, this needs to be clear.”
The OEM kickoff questionnaire now includes:
This improves campaign precision from day one.
Disclaimer for eligibility: it includes any internal criteria the client uses to qualify a valid prospect, such as income range, job type, credit score, or city-specific serviceability.
Even if supply partners cannot target these filters precisely, knowing them upfront helps us evaluate whether the channel can realistically convert and prevents misalignment between traffic quality and KPI expectations.
The framework we now use before recommending OEM to any app.
If more than one of these checks fails, OEM will not be recommended.
This is how REPLUG prevents wasted spend before it happens.
“The user may install today, browse tomorrow, and act next week. That’s normal for OEM.”
If the attribution window closes too soon, performance will look artificially low.
Some clients delay approval or avoid it, which blocks the campaigns entirely.
It requires:
It is fundamentally different from Meta, Google, or traditional UA channels.
OEM can be a powerful incremental channel, but only when:
This case shows the value of choosing an agency that can diagnose misalignment early.
This is how performance teams stay profitable in the long term.
Can OEM work for regulated apps like loans or fintech?
Yes, only with the right geo logic and eligibility clarity. If those rules are too strict, OEM might not be the right fit.
Why can OEM look weak even when traffic is strong?
Conversions happen beyond the 7-day attribution window on most tracking setups.
How long does OEM need to produce meaningful learnings?
2–4 weeks minimum.
When should a team stop OEM and switch channels?
When the KPI depends on precision, OEM inventory cannot provide.
OEM marketing is truly about aligning channel, product, geo, KPIs, and user journey.
REPLUG’s strength is not just running campaigns. It’s diagnosing whether the channel even makes sense before we scale it.
👉 If you’re unsure whether OEM fits your product, our team can pressure-test your setup and give you a clear path forward. Let’s talk.